Transcription

1 Closing the Gender Pay Gap Would Improve Women s Social Security Protections and Strengthen Social Security s Financing More than 51 years after the enactment of the Equal Pay Act, i women still do not receive equal pay for equal work. In 2012, the typical full- time, year- long female worker earned much less than her male counterpart only about 77 cents on the dollar. ii Even when performing the same work, e.g. in low- wage jobs that do not require a college degree, women are underpaid vis- à- vis men. iii While experts disagree regarding the size and causes of the gender pay gap, no one can argue that it does not damage women s economic security not only in the present, but also in the future, by limiting their Social Security protections and ability to save. The Gender Pay Gap is Sizable and Grows Over a Woman s Career The gender pay gap has many causes and layers. It is caused in part by direct discrimination on the basis of gender, in part by differential compensation across occupations traditionally pursued by men and women, respectively, and in part by the failure of the American workplace to facilitate the balancing of work and family caregiving. The data clearly show that women make less than men in nearly every occupation for which wage data are tracked. iv Among those who attend college, one year out of college, women are paid 18 percent less than their male counterparts, v and ten years out of college, 31 percent less. vi Even after taking into account college major, occupation, economic sector, experience, selectivity of one s undergraduate institution, GPA, and other factors, women still earn 7 percent less than men one year out of college, and 12 percent less 10 years out. vii Over a 35- year career, such earnings discrepancies cumulate to very large sums: across the entire workforce, this adds up to an average career pay gap of $434,000; viii for college- educated women, the career deficit vis- à- vis a man with the same level of education averages $654,000. ix Closing the gender pay gap would: Help Close the Gender Gap in Social Security Benefits, and Strengthen Economic Security of Older Women Because Social Security benefits are based on lifetime earnings, the gender pay gap during working years creates a gender gap in Social Security benefits. Furthermore, the fact that many women exit the workforce to perform family caregiving work often puts gaps in their earnings records that lower Social Security benefits. In 2012, women aged 65 or older received an average Social Security benefit of $12,520, compared to $16,396 for men. x Furthermore, women s longer life expectancies and lower levels of savings leave them with fewer resources as they age, making them increasingly reliant upon their Social Security benefits. xi Eliminating the wage gap would increase women s Social Security benefits, providing stronger economic security in retirement. It would also lower poverty among older women, thereby helping to 1

2 close the poverty gap among seniors. Today, among those age 65 or older, nearly twice as many women as men are poor: 11 percent of women, compared to 6.6 percent of men. xii Improve Women s Ability to Supplement Social Security with Retirement Savings The ability of women to accumulate individual retirement savings is negatively impacted by the gender pay gap. The more income women have, the more they will be able to save for retirement. Improve Protections for Doubly Disadvantaged Women Women of color, women in same- sex partnerships, and disabled women are doubly disadvantaged by the gender wage gap. Closing the wage gap, in combination with other policies that improve the earnings of disadvantaged populations in general, would make Social Security s protections more adequate for doubly disadvantaged women. Improve Disability, Life, and Unemployment Insurance Protections for Women and Their Families Because Social Security s disability and life insurance benefits are based on the same formula used to calculate retirement benefits, the wage gap substantially affects these vital protections for women and their families. Today, women bring home at least a quarter of the earnings in nearly two- thirds (64 percent) of American families, and over a third (34 percent) of employed women are their family s sole breadwinner. xiii Since women s earnings are increasingly critical to American families, it is even more important to replace the loss of these wages should a female worker become disabled or die. Eliminating the wage gap would improve these protections for families who rely on women s earnings, especially in single parent households where there may not be additional sources of income. Strengthen Social Security s Finances The Institute for Women s Policy Research estimates that closing the wage gap between women and men of the same age, at similar levels of education and hours of work, would directly increase the wages of 59.3 percent of women and, in 2012, would have led to additional income of $447.6 billion dollars. xiv Since about 97 percent of female workers xv have earnings below Social Security s tax cap ($117,000 in 2014), and the vast majority of these women work in employment covered by Social Security, most of this additional income would be subject to Social Security, generating tens of billions of additional Social Security revenue each year. xvi This additional revenue, coupled with women receiving benefits on their own earnings records, xvii as opposed to their spouses, could reduce Social Security s projected long- term shortfall by roughly one- third! Policy Solutions Since the passage of the Equal Pay Act, women have made tremendous gains in educational attainment, now representing a majority (52 percent) of the population with a bachelor s degree or higher. xviii Still, progress toward pay equality has stalled in recent years. xix Given the degree to which it would strengthen the economic and retirement security of women and their families, the country should do whatever it can to close the gender pay gap. There are four steps Congress could take immediately to close the gender gap in pay and retirement security: Pass the Paycheck Fairness Act, sponsored by Congresswoman Rosa DeLauro (D- CT) and Senator Barbara A. Mikulski (D- MD). xx It would close loopholes in the Equal Pay Act, improve 2

3 protections against wage discrimination, require employers to show pay disparity is truly related to job- performance not gender, and prohibit retaliation against workers who inquire about employers wage practices. xxi Adopt paid family leave. Even as women take on a greater presence in the workforce, they still retain traditional roles in the home women are more likely than men to leave the workforce in order to care for a family member. While leaving the workforce may be temporary, the economic impact of doing so is not: not only do women lose wages while taking leave; they face greater difficulty advancing in their careers once they return. xxii The United States is the only OECD country without a statutory right to paid maternity leave. xxiii On the state level, California has already successfully implemented paid family leave, and it has been received positively by both employers and workers. xxiv Paid family leave could also be incorporated into the Social Security program, as is done in some other countries social insurance systems. xxv The Family and Medical Insurance Leave Act, proposed by Congresswoman Rosa DeLauro (D- CT) and Senator Kirsten Gillibrand (D- NY), would provide 12 weeks of paid leave to qualifying workers for the birth or adoption of a new child, the serious illness of an immediate family member, or a worker s own medical condition paid for through employee and employer Social Security contributions of 0.2 percent of wages. xxvi This is an affordable, sensible measure that would allow many women who now exit the workforce upon childbirth to remain on their career and pay trajectory. Provide credit toward Social Security benefits for caregivers. Forthcoming bills by Congresswoman Gwen Moore (D- WI), xxvii Congresswoman Nita Lowey (D- NY), xxviii and others would provide caregiver credits to low- wage workers for each year of care for children under the age of six or for elderly or disabled family members. xxix This would help close the pay gap after retirement by strengthening low- wage working mothers subsequent retirement benefits. Raise the minimum wage to $10.10/hour. Two- thirds of minimum wage workers are women, disproportionately women of color. xxx Raising the minimum wage would close the wage gap by 5 percent xxxi and raise the wages of an estimated 4.8 million working mothers, xxxii while also strengthening their Social Security protections. xxxiii Conclusion Although the pay gap has narrowed somewhat in the decades since equal work for equal pay first became law, the remaining gap is unacceptable. A majority of Americans agree: nearly seven in ten, men and women alike, of all ages, say that this country needs to continue making changes to give men and women equality in the workplace. xxxiv This wage gap also violates our sense of fair play. Those who work hard and contribute to work and family should have adequate protections for themselves and their families when they retire, become disabled, or die. Eliminating the wage gap is especially critical to advancing these American values. It ensures that women will be able to better achieve financial security for themselves and their families, while also furthering their contributions to our Social Security system and, consequently, strengthening its protections for women and their families. 3

4 i U.S. Equal Employment Opportunity Commission, The Equal Pay Act of 1963, (June 10, 1963). ii If one looks at median weekly rather than annual earnings, the gap is slightly narrower, at 17.9 rather than 23 percent. Ariane Hegewish, Claudia Williams, Heidi Hartmann, and Stephanie Keller Hudiburg, The Gender Wage Gap: 2013; Differences by Race and Ethnicity, No Growth in Real Wages for Women April gender- wage- gap differences- by- race- and- ethnicity- no- growth- in- real- wages- for- women iii Joan Entmacher et al., Six New Facts on Why We Must Raise the Minimum Wage and Advance Equal Pay, National Women s Law Center, March 11, blog/six- new- facts- why- we- must- raise- minimum- wage- and- advance- equal- pay iv U.S. Bureau of Labor Statistics, Current Population Survey, Annual Average Data Tables, February 26, 2014, Table 39. v Christianne Corbett and Catherine Hill, Graduating to a Pay Gap: The Earnings of Women and Men One Year after College Graduation, American Association of University Women, October 24, to- a- pay- gap- the- earnings- of- women- and- men- one- year- after- college- graduation.pdf vi Judy Goldberg Dey and Catherine Hill, Behind the Pay Gap, AAUW, April the- Pay- Gap.pdf vii Christianne Corbett and Catherine Hill, Graduating to a Pay Gap: The Earnings of Women and Men One Year after College Graduation, American Association of University Women, October 24, to- a- pay- gap- the- earnings- of- women- and- men- one- year- after- college- graduation.pdf viii Senator Barbara A. Mikulski Media Center, Mikulski, DeLauro Introduce Paycheck Fairness Act to End Wage Discrimination, January 23, cfm ix Christianne Corbett and Catherine Hill, Graduating to a Pay Gap: The Earnings of Women and Men One Year after College Graduation, American Association of University Women, October 24, to- a- pay- gap- the- earnings- of- women- and- men- one- year- after- college- graduation.pdf x Social Security Administration, Social Security Is Important to Women, March alt.pdf xi Social Security Administration, Social Security Is Important to Women, March alt.pdf xii Social Security Administration, Income of the Population 55 or Older, 2012, April 2014, Table xiii AAUW, The Simple Truth About the Gender Pay Gap, March 10, xiv Institute for Women s Policy Research calculations based on the Current Population Survey Annual Social and Economic supplements, , for calendar years ; all in 2012 dollars. Heidi Hartmann et al., How Equal Pay for Working Women would Reduce Poverty and Grow the American Economy, Briefing Paper no. C411, Institute for Women s Policy Research, January equal- pay- for- working- women- would- reduce- poverty- and- grow- the- american- economy xv Social Security Administration, Annual Statistical Supplement, 2013, February 2014, table 4B.4. xvi Since 96.7 percent of female workers have earnings below Social Security s taxable maximum, eliminating the wage gap would increase the amount of income covered by the payroll tax considerably, by as much as $433 billion in one year alone. With worker and matching employer Social Security contributions of 6.2 percent respectively, this would amount to a nearly 8 percent boost in Social Security payroll contribution revenue $54 billion in This is a rough estimate that, in practice, should be adjusted downward somewhat to account for the fact that for the very small share of women whose income is close to Social Security s tax cap, the additional income stemming from closure of the gender pay gap would push their incomes over the cap; any additional earnings for these 4

5 women above the cap would not be taxable for Social Security. Finally, if there were offsetting wage or employment effects, this would adjust the revenue gains downward as well. xvii While the additional earnings would also generate additional earned benefits for most women, this cost would be heavily offset by women, due to their now stronger earnings records, either not claiming or claim smaller spousal or survivor benefits. xvii Hence closure of the gender pay gap would generate considerably more additional revenue than additional benefits. xviii U.S. Census Bureau, American Community Survey 3- Year Estimates, xix AAUW, The Simple Truth About the Gender Pay Gap, March 10, 2014, Figure 1. xx S.84 - Paycheck Fairness Act, January 23, congress/senate- bill/84 xxi AAUW, The Simple Truth About the Gender Pay Gap, March 10, 2014, Figure 1. xxii Pew Research Center, On Pay Gap, Millennial Women Near Parity For Now: Despite Gains, Many See Roadblocks Ahead, December 11, and- work_final.pdf xxiii OECD Family database. (accessed June 14, 2014). xxiv More outreach is required, however, to reach low- wage workers, many of whom are unaware of the program. Ruth Milkman and Eileen Appelbaum, Unfinished Business. Paid Family Leave in California and the Future of U.S. Work- Family Policy (Cornell University Press, 2013). xxv OECD Family database. (accessed June 14, 2014). xxvi S The Family and Medical Insurance Leave Act of 2013, (December 12, 2013). 113s1810is.pdf xxvii Representative Moore s bill credits individuals for up to five years of care provided to a child younger than 6 who resides in that individual s household. H.R Social Security Enhancement and Protection Act of 2013, March 21, https://beta.congress.gov/bill/113th- congress/house- bill/1374 xxviii Center for Community Change Action, Caregiver Credit Bill Talking Points, (retrieved June 19, 2014). file:///c:/users/stconnolly/downloads/caregiver%20credit%20bill%20talking%20points%20final.pdf xxix For each family service year, wages equal to as much as half the national average wage index would be credited toward the worker s earnings record for Social Security benefit calculation purposes. IWPR, NCPSSM, and NOW, Breaking the Social Security Glass Ceiling: A Proposal to Modernize Women s Benefits, May 2012, p xxx NWLC, Fair Pay for Women Requires Increasing the Minimum Wage and Tipped Minimum Wage, March 28, pay- women- requires- increasing- minimum- wage- and- tipped- minimum- wage xxxi The White House, The Impact of Raising the Minimum Wage on Women: And the Importance of Ensuring a Robust Tipped Minimum Wage, (Mar. 2014), p. 1. xxxii Unpublished EPI estimates cited in NWLC, Fair Pay for Women Requires Increasing the Minimum Wage and Tipped Minimum Wage, March 28, pay- women- requires- increasing- minimum- wage- and- tipped- minimum- wage#fifteen xxxiii Social Security Works, Restoring the Minimum Wage Would Strengthen Social Security Protections for Low- Wage Workers and Improve System Finances, February 21, content/uploads/2014/02/restoring- the- Minimum- Wage- Would- Strengthen- Social- Security- Protections- for- Low- Wage- Workers- and- Strengthen- System- Finances.pdf xxxiv Pew Research Center, On Pay Gap, Millennial Women Near Parity For Now: Despite Gains, Many See Roadblocks Ahead, December 11, and- work_final.pdf 5

TOP 25 ABORTION STATISTICS IN AMERICA 2015 Care Net. All rights reserved. 2015 Care Net. Facts On Abortion. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system,

The Registered Nurse Population Findings from the 2008 National Sample Survey of Registered Nurses September 2010 U.S. Department of Health and Human Services Health Resources and Services Administration

Case Study The economic benefits of vocational education and training in South Africa Introduction As a developing economy, South Africa recognises the importance of a skilled workforce to enable economic

A Few Facts and Ideas Related to Informal Long-term Care Economic value of unpaid care: The economic value of care provided by family caregivers in the U.S. has been estimated at $375 billion. i In Minnesota,

JANUARY 2012 Pay Matters: The Positive Economic Impacts of Paid Family Leave for Families, Businesses and the Public A REPORT OF THE CENTER FOR WOMEN AND WORK Linda Houser, Ph.D. Affiliate Fellow Thomas

FACT SHEET May 2, 2009 Erie County Property Taxes Greg Michalek University at Buffalo Law Student What is a property tax? It is a tax on the assessed value of real property. Typically set by school boards,

Workflow Administration of Windchill 10.2 Overview Course Code Course Length TRN-4339-T 2 Days In this course, you will learn about Windchill workflow features and how to design, configure, and test workflow

Business Administration of Windchill PDMLink 10.0 Overview Course Code Course Length TRN-3160-T 3 Days After completing this course, you will be well prepared to set up and manage a basic Windchill PDMLink

R162-2f-206c. Certification of Continuing Education Course. (1) (a) The division may not award continuing education credit for a course that is advertised in Utah to real estate licensees unless the course

First Impressions: Comparing State Paid Family Leave Programs in Their First Years ISSUE BRIEF Rhode Island s First Year of Paid Leave in Perspective FEBRUARY 2015 Family caregiving is a major challenge

IWPR Publication #D487 March 2010 Social Security: Vital to Retirement Security for 35 Million Women and Men Jeff Hayes, Heidi Hartmann, and Sunhwa Lee This Briefing Paper examines major sources of income

NATO STANDARD AMedP-8.1 DOCUMENTATION RELATIVE TO INITIAL MEDICAL TREATMENT AND EVACUATION Edition A Version 1 JUNE 2013 NORTH ATLANTIC TREATY ORGANIZATION ALLIED MEDICAL PUBLICATION Published by the NATO

Family And Medical Insurance Leave Act (FAMILY Act) Rachel Lyons Government Affairs Manager Center for Economic Policy Research Briefing January 30, 2014 About Us The National Partnership for Women & Families

Earnings and Income of U.S. Women and Men The median annual earnings for full-time, year-round women workers in 2010 was $36,931 compared to men s $47,715. 1 In 2011, the median weekly earnings for full-time

Women s Participation in Education and the Workforce Council of Economic Advisers Updated October 14, 214 Executive Summary Over the past forty years, women have made substantial gains in the workforce

THE WHITE HOUSE Office of the Press Secretary For Immediate Release June 26, 2013 EXECUTIVE ORDER - - - - - - - ESTABLISHING THE WHITE HOUSE COUNCIL ON NATIVE AMERICAN AFFAIRS By the authority vested in

EMPLOYMENT INSURANCE AND WOMEN: WHAT YOU SHOULD KNOW 1. Fewer Women Qualify - All employees pay into EI, but women are less likely than men to qualify for benefits when they lose their job. The situation

WHEREAS: AMERICAN DECLARATION OF THE RIGHTS AND DUTIES OF MAN (Adopted by the Ninth International Conference of American States, Bogotá, Colombia, 1948) The American peoples have acknowledged the dignity

Internet, broadband, and cell phone statistics By: Lee Rainie, Director January 5, 2010 Overview In a national survey between November 30 and December 27, 2009, we find: 74% of American adults (ages 18

IWPR #D488 March 2010 Women and Social Security: Benefit Types and Eligibility Ashley English and Sunhwa Lee Social Security provides monthly benefits to qualified retired and disabled workers, their family

Introduction to Windchill PDMLink 10.0 for Heavy Users Overview Course Code Course Length TRN-3146-T 2 Days In this course, you will learn how to complete the day-to-day functions that enable you to create

April 2011... Ageing strategies Introduction Following the general election in the Republic of Ireland (ROI) in February 2011, Kathleen Lynch was given ministerial responsibility for older people's issues.

International Conference on Educational Research and Sports Education (ERSE 013) Usage of Information Technology in the Programs of Music Teaching, Example of Uludag University Turkey Sirin Akbulut Demirci,

The Gender Wage Gap Kerri Neil The wage gap between men and women is well documented. It has been present since women began entering the work force and despite significant progress in gender equality over

Policymaker Issue Brief November 2012 CT Health Insurance Exchange must negotiate on behalf of consumers The promise of the CT Health Insurance Exchange, now in development, is meant to be a fair, transparent

by Christian Classics Ethereal Library About Book of Needs of the Holy Orthodox Church by Title: URL: Author(s): Publisher: Print Basis: Rights: Date Created: Status: CCEL Subjects: Book of Needs of the

Risk Management Policy PURPOSE: NEW/REVISED POLICY: The California State Student Association maintains a Risk Management Policy to ensure the ongoing identification of potential risks and threats to the

Factsheet: Women and Gender Inequality in the U.S. Labor Force Since the 1970s the role of women in the U.S. work has changed tremendously - more women have entered the work, they are increasingly holding

1 A Gender Reversal On Career Aspirations Young Women Now Top Young Men in Valuing a High-Paying Career By Eileen Patten and Kim Parker Career Importance, by Gender % of 18-34-year-olds saying being successful

IWPR #C414 April 2014 The Gender Wage Gap by Occupation 2013 and by Race and Ethnicity Women s median are lower than men s in nearly all s, whether they work in s predominantly done by women, s predominantly

IWPR #R366 January 2013 The Status of Women in Cumberland County, North Carolina Women in Cumberland County, and in North Carolina as a whole, have made significant progress during the last few decades,

What s New in Microsoft Office Project 2003 Getting Help Getting Help with This Book and Its CD-ROM Getting Help with Microsoft Office Project 2003 Using the Book s CD-ROM What s on the CD-ROM System Requirements

United States 1 Shirley Gatenio Gabel (Fordham University), Jane Waldfogel (Columbia University) and Linda Haas (Indiana University) April 2015 NB. United States is a federal state. For comparisons with

Social Security and the Changing Economic Role of Women Heidi Hartmann, Ph.D. President, Institute for Women s Policy Research Research Professor of Women s Studies and Public Policy, The George Washington

May 2010 UNDERSTANDING THE ECONOMY : UNEMPLOYMENT AMONG YOUNG WORKERS A REPORT BY THE U.S. CONGRESS JOINT ECONOMIC COMMITTEE REPRESENTATIVE CAROLYN B. MALONEY, CHAIR Executive Summary Although the economy

ATTORNEYS MAKING OUT LIKE BANDITS: IT IS LEGAL, BUT IS IT ETHICAL? By Elizabeth Ann Escobar I. IN WHOSE BEST INTEREST?...2 II. COMPENSATION: WORDS MATTER...3 III. EDUCATION AND STATUTORY REFORM...5 IV.

Fact Sheet: Girls and Young Women There are 1.8 billion young people in the world. Approximately half of them 900 million are adolescent girls and young women. Girls primary school completion rates are

Open for Business Women own one in four businesses in Minnesota, but the number of womenowned firms in the state grew at a surprisingly slow pace in the five years leading up to the recession. If you follow

WOMEN OWNED SMALL BUSINESS (WOSB) PROGRAM CERTIFICATION ECONOMICALLY DISADVANATGED or EDWOSB All EDWOSBs that are interested in submitting an offer on a solicitation that has been set aside for WOSBs under

NEW JERSEY S FAMILY LEAVE INSURANCE PROGRAM A CENTER FOR WOMEN AND WORK ISSUE BRIEF OCTOBER 2012 Awareness of New Jersey s Family Leave Insurance Program Is Low, Even As Public Support Remains High and

University of South Florida Scholar Commons Graduate Theses and Dissertations Graduate School 7-12-2010 Perceived Workplace Discrimination as a Mediator of the Relationship between Work Environment and

Barbara B. Kennelly, Chair LCAO Principles on Social Security Adopted November 16, 2010 INTRODUCTION Social Security Protects Nearly All American Workers and Their Families Social Security has been the

Rev. 4/30/09 TABLE OF CONTENTS Preface Form I Form II Form III Form IIIA Form IV Form V Form VI Form VII Form VIII Form IX Form X Form XI Form XII Form XIII Form XIV Form XV Form XVI Form XVII Form XVIII

A report prepared by the UNC Charlotte Urban Institute for the Women s Summit April 11, 2011 A report prepared for the Women s Summit by the UNC Charlotte Urban Institute 1 Table of Contents Table of Contents...

Cost of living The cost of housing is the single biggest cost of living issue in Australia today. Compared to other expenditure items, housing costs comprise the biggest share of household budgets accounting

Reg. IV.18.(i). Special Rules: Telecommunications and ancillary service providers. [Adopted July 31, 2008] The following special rules are established with respect to the apportionment of income from the

OCTOBER 19, 2012 Social Media and Political Engagement 66% of social media users have employed the platforms to post their thoughts about civic and political issues, react to others postings, press friends

GUIDELINES FOR ONLINE SUBMISSION OF APPLICATIONS Important Note/Information for the applicants: It is in the interest of the applicants to study in detail and thoroughly observe the guidelines given in

FAMILY LEAVE INSURANCE AND TEMPORARY DISABILITY INSURANCE PROGRAMS The enactment P.L. 2008, chapter 17 on May 2, 2008 created the New Jersey Family Leave Insurance Program and required the Commissioner

Research and Policy Brief UWEP Utah Women and Education Project May 25, 2010 UWEP 2010-204 Women and Higher Education in Utah: A Glimpse at the Past and Present According to Lumina Foundation researchers,

SPECIAL CONDITION OF CONTRACTS i) The contractors should quote the rate in figures as well as in words, and amount tendered by them. The amount for each item should be worked out and the requisite totals

DIFFERING WORKPLACE PERCEPTIONS OF FEMALE GRADUATES Frederick J. DeCasperis, Ed.D Department of Marketing & Management Siena College decasperis@siena.edu ABSTRACT Female students under the age of 25 when

IWPR #C440 April 2016 The Gender Wage Gap by Occupation 2015 and by Race and Ethnicity Women s median are lower than men s in nearly all s, whether they work in s predominantly done by women, s predominantly

SHIPS FROM MADRAS NAME OF SHIP DATE OF ARRIVAL Truro November 16, 1860 Lord George Bentinck December 24, 1860 Tyburnia March 20, 1861 Earl of Hardwick September 21, 1863 Scindian October 29, 1863 Rajasthana

THE MEGHALAYA VALUE ADDED TAX BILL, 2003. A Bill (As passed by the Assembly) To provide for and consolidate the Laws relating to levy of Value Added Tax on Sales or Purchases of goods in the State of Meghalaya.